Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570

Question

Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570 Unearned Revenue (40 units) $ 11,600 Accounts Payable (Jan Rent) $ (1,550) Notes Payable $ 4,050 Contributed Capital $5,000 $2,600 $16,500 $6,300 4,270 Retained Earnings-Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $150 per unit. . In January, WWC received a $5,000 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $4,050. . wwC's note payable accrues interest at a 12% annual rate. wwcwluse hOrmethd adn perpetual bais

Explanation / Answer

Ans 4 Bad debt expenses $472.20 (21000+5000-2250-140)*2% net Accounts receivable Accounts receivable (11600-1900+21000-2250-1650-9300) 17500 Allowance for Doubtful debts 502.2 (1150-1650+530+472.2) net Accounts receivable 16997.8 ans 5 Units in ending Inventory 50 (45+170-140-40+15) ans 6 Cost of Ending Inventory (12750/170 units*50) 3750 Add: cost of freight (340/170*50) 100 Cost of Ending Inventory 3850 ans 7 Cost of good sold LIFO 9625 ((140-15)*12750/170)+((140-15)*$2) If any doubt please comment

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